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Chapter 10: Q.122 (page 608)

A traveler wanted to know if the prices of hotels are different in the ten cities that he visits the most often. The list of the cities with the corresponding hotel prices for his two favorite hotel chains is in Table 10.33. Test at the1% level of significance.

Short Answer

Expert verified

At the 1%the mean of ten cities' differences level of significance, there is insufficient evidence from the sample data, from the data sample, to establish that the prices at Hyatt Regency and Hilton hotels are different.

Step by step solution

01

Given Information  

The given data is

We have to test at1%significance level.

02

Explanation  

a. the null hypothesis is

渭d=0

b. The alternative hypothesis is,

渭d鈮�0

c. The mean of ten cities' differences

d. The t distribution of a student.

e. Fill in all requirements using Minitab's two sample t-test option.

The result shown below

Test statistic is-0.42

f. The P value is0.685

g. graph is plotted for P value.

i.伪=0.01

ii. Acceptance of the null hypothesis

Pvalue>伪is the reason for the decision.

Conclusion: At the 1%the mean of ten cities' differences level of significance, there is insufficient evidence from the sample data, from the data sample, to establish that the prices at Hyatt Regency and Hilton hotels are different.

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